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Spain’s Iberdrola calls for greenwashing rules
Global Banking & Finance Review®
Company
By Pietro Lombardi
MADRID (Reuters) – Clear rules defining green energy are necessary to tackle misleading or exaggerated climate-friendly claims, the chief executive of Spain’s Iberdrola Renovables Energia said at the Future Energy Summit in Madrid on Tuesday.
“We have to be very careful with greenwashing,” said Julio Castro, whose company is the renewables arm of Spain’s Iberdrola.
“This is something that a renewable energy producer might not have been concerned about many years ago, but today we have to be very concerned about it,” he added.
The European Commission and national authorities in the region are moving to step up efforts against misleading greenwashing practices.
Castro said clear rules should “define what is green and what is not green”, based on either industry self-regulation and agreement on such criteria or on regulation imposed by regional or national authorities.
“A drop of green stuff in a bucket full of black stuff does not make it green,” he said.
(Reporting by Pietro Lombardi; editing by David Latona)
Greenwashing refers to the practice of companies misleading consumers regarding the environmental benefits of a product or service. It often involves exaggerating or fabricating claims about sustainability.
Renewable energy comes from natural sources that are replenished at a faster rate than they are consumed. Common types include solar, wind, hydroelectric, and geothermal energy.
Regulation in finance refers to the rules and laws that govern financial institutions and markets. These regulations are designed to maintain stability, protect consumers, and ensure fair practices.
Compliance refers to the process of adhering to laws, regulations, and guidelines set by governing bodies. In finance, it ensures that institutions operate within legal frameworks.
Sustainability involves meeting the needs of the present without compromising the ability of future generations to meet their own needs. It encompasses environmental, social, and economic dimensions.
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